BofA argues GM, Ford, and Stellantis either face a future of funding continued losses in China or they can redeploy resources to finally become competitive with Tesla. But they can’t do both.
I wish it was as simple as that, because I want the same thing. I just hate how American and Chinese auto industries seem very hand in glove with the government, albeit to varying degrees and with differing dynamics. It’s unsavoury in either case.
Edit: Everyone who responded to me had good opinions, I have nothing to add or take away
Car infrastructure has always been funded out of public coffers. The personal automobile is not inherently a profitable enterprise to a country. It serves primarily as a way of improving personal mobility and thus second- and third- order economic productivity.
Subways and trains are vastly more efficient systems, but unfortunately they don’t have the same military logistics benefits.
In terms of actual companies, we’re seeing a bit of a renaissance with EVs because EVs are inherently simple, easy to commoditize, and don’t require as significant amounts of government support. China has basically cut government backing out of their EV industry, which has led to some consolidation but somehow has not ended the price war.
Transportation in general usually has a lot of public funding and government involvement. Tend to be common for air, sea, rail, and car transport solutions.
Yeah Detroit is literally the reason for THE ENTIRE COUNTRIES lack of good public transportation. The big three have and will continue to conspire deeply with the US government. Especially as that’s become commonplace among just about every corp rich enough these days.
I wish it was as simple as that, because I want the same thing. I just hate how American and Chinese auto industries seem very hand in glove with the government, albeit to varying degrees and with differing dynamics. It’s unsavoury in either case.
Edit: Everyone who responded to me had good opinions, I have nothing to add or take away
Car infrastructure has always been funded out of public coffers. The personal automobile is not inherently a profitable enterprise to a country. It serves primarily as a way of improving personal mobility and thus second- and third- order economic productivity.
Subways and trains are vastly more efficient systems, but unfortunately they don’t have the same military logistics benefits.
In terms of actual companies, we’re seeing a bit of a renaissance with EVs because EVs are inherently simple, easy to commoditize, and don’t require as significant amounts of government support. China has basically cut government backing out of their EV industry, which has led to some consolidation but somehow has not ended the price war.
About military logistics and trains, are you sure you’re right? We aren’t supplying Ukraine by trucks last time I’ve seen a shipment
Transportation in general usually has a lot of public funding and government involvement. Tend to be common for air, sea, rail, and car transport solutions.
Union between state and mega corps is the standard everywhere it seems, we are just in denial about it because it would break normies brains
Yeah Detroit is literally the reason for THE ENTIRE COUNTRIES lack of good public transportation. The big three have and will continue to conspire deeply with the US government. Especially as that’s become commonplace among just about every corp rich enough these days.